Burn em.

But a few guests are going to burn you.

I was burned out on renovating the property. 

The overall LTV (including all 3 mortgages) will be key and your selling point will need to be that the 2nd mortgage ($8k) will burn off in 2.5 years (based on your surprise that it was even out there, I'd recommend that you follow up in 2.5 years and ensure that it's been satisified, so that it doesn't surprise you again in the future).Does the $8k grant vest over the 5 years? 

One of them caused an electrical fire and burned out an outlet.

Once the interior was stripped and the infrastructure tested, I brought in commercial contractors to handle critical systems like plumbing, electrical, roofing, and HVAC installation.The house, built in the early 1900s, was originally a coal-burning residence.

Its all about the heavy brush with Manzanita and other dense brush full of oils that burn so hot and fast.. thats why in many areas in CA they have control burns..

Everytime I've been burned they talk a great game up front.

If you don't look at them before buying in person, you will get burned at some point and regret it.   

Failures: Had a house that burned down this month that wasn’t insured as high as I should have.